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TDCC 2017 SUMMER NEWSLETTER - VOLUMN 170

OUTLOOK

rNewwst ePassbook Features Now Available

SPECIAL REPORT Annual Shareholder Meeting

BUSINESS HIGHLIGHT       

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Chinese Calligraphy : AUTUMN "秋"


Newest ePassbook features now available from TDCC ePassbook, an innovative APP made available by TDCC this March, enables investors to examine their passbook entries, stock enquires and transactions upon the authentication of user identifications all with the convenience of their mobile devices. In addition, the push notifications and StockHelp features will soon come online, only preceded by login protections and the automatic syndication with the eStockVote in early June (another contemporary APP from TDCC); investors now can fully exercise their rights as shareholders, digitally. The push notification function is an integration cross three primary information categories that contains twenty one critical information concern the general investors. For instance, the dividend distribution, results of lottery draws and biddings, and shareholder's meeting resolutions are among the most desired messages. Whenever there is an update, an instantaneous notification will be sent to the users, all related details then can be closely scrutinised when the users log on to ePassbook APP. Furthermore, those preferable notifications can also be easily personalised on the home page of the ePassbook APP. One other feature of the ePassbook APP is the StockHelp which provides shareholders with information such as the times and dates for shareholder's meetings, all souvenirs provided on sites, allotments and dividends, etc., based on investors' stocks on hand. It's the time of the year when all companies are having allotment and dividend distributions, with the advanced ePassbook APP, investors can now obtain the most current cash dividend distribution status, hence a more effective management of their holdings.

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Annual Shareholder Meeting At its 2017 annual general meeting on June 21, TDCC approved a per-share cash dividend of NT$1.5 and stock dividend of NT$0.25 for every shareholder, among other resolutions. Chairman & CEO Mr. Sherman Lin noted that TDCC, as a customer-oriented business, will continue to cater to the diverse needs in Taiwan’s capital market, and to remain committed to developing innovative financial technology which is in collaboration with all partners, as well as providing solutions that help customers reduce operating costs based on the principle of platform economy. Some of the initiatives that TDCC rolled out in 2016, including “digitised environment build-out,” “enhanced cross-border custody service,” “e-voting promotion,” “optimisation of fund platform functions,” “money laundering prevention & query system establishment” and “promotion of corporate charity and financial education”, have had some solid results. TDCC President Mr. Ching-Li Meng also highlighted some of the major achievements in 2016, including the provision of online application of book-entry transfer and the establishment of an automated operating environment for securities firms. The settlement of TPEx-listed stocks (both money payment and securities transfer) has been synchronised to T+2 day. Meanwhile, TDCC launched more value-added services for cross-border custody, and was preparing for the issuance of dematerialised CP2. FundRich customers can now apply for bank account authorization online. The order placement apps of securities brokers now support the shareholder e-voting feature. The establishment of the Anti-Money Laundering & query system was also one of the most celebrated achievements of TDCC in 2016. Looking ahead, TDCC will continue to play its role as a back-office facilitator of Taiwan’s capital market, focusing to enhance service efficiency and improving the functionality of depository, clearing and settlement, and book-entry transfer for financial products . The future perspective will be “establishment of an eco-system for digitized finance 3.0,” “dematerialized issuance of commercial paper” and “Fintech application in FundRich.”

2016 Corporate Annual Report can be download from TDCC’s website.

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TDCC Offers New Option To Lodge Securities To The Court As Collateral 1. Apply for lodgment

APPLICATION

2. Apply for transfer

TDCC PARTICIPANT

3. Transfer to court account

TDCC

4. Produce 5. Submit the a lodgment lodgment certificate certificate and receive a custody certificate

NATIONAL TREASURE AGENT BANK

COURT HOUSE

6. Submit the custody certificate to complete the lodgment process

Lodgment by definition means the process of a

A courthouse is required to open a special

person submitting a piece of property, as requested

account at a National Treasury agent bank which

by law, to the court as collateral for a lawsuit. Given

was a TDCC’s participant for the safekeeping of the

the dematerialization of securities and investors’

collateralized securities. Upon the approval of the

need to make a lodgment, TDCC has worked with

court to put securities under lodgment, a client may

judicial government agencies in amending and

take his/her securities passbook and the court

enacting regulations governing the application of

ruling document to a securities firm to apply for a

lodgment, retrieval and claim of securities under

lodgment. The securities firm will apply for transfer

centralized custody, and providing the legal ground

of such securities from the client account to the

for the court to withhold the compensation, substi-

special account of the court at the National Treasury

tutes and interest of such securities. TDCC is

agency bank. Upon receiving the securities, the

responsible for providing book-entry services for

agency bank will issue a custody certificate to the

the aforementioned transfer and the services were

applicant, who then is required to submit the certifi-

officially launched on July 3, 2017.

cate to the lodgment office of the court to complete the lodgment process.

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TDCC To Provide Registration Services To Commercial Paper Issuers In response to government policies, TDCC rolls out registration services for the issuance of financing and foreign currency commercial papers in September 2017, marking a new milestone of financial technology (FinTech) application in Taiwan’s money market. TDCC has put in place all the mechanisms required for the registration. Going forward, issuers can file the registration application electronically or manually based on their different needs. As the services come on stream, TDCC streamlines the process of issuance registration using available FinTech, which should help reduce the operating risks, enhance issuance efficiency and safety. By lowering the operating cost of manual delivery of commercial paper and minimizing the risk of losing the securities during the delivery process, the new services will effectively contribute to the development of the bill market. Two viable approaches of registration application:

Approach 1 Electronically: ISSUER Key in Registration instruction Guarantee required/ not required

GUARANTOR

BILL DEALER Key in Registration instruction

Confirmation

TDCC Match and complete registration

Approach 2 Manually: ISSUER Fill in a registration application form

GUARANTOR

BILL DEALER 1. Key in registration instruction 2. Deliver the application form Custody bank of paper-based securities

Endorsement

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TDCC Verify and complete registration


TDCC Fund Processing & Settlement System Introduces Futures Trust Funds, Providing Investors with More Diversified Product ServicesTDCC Accounts

Million NT$

2,180,344

80,000 70,000 62,392

60,000 50,000

53,633 42,441

40,000

1,599,753 1,548,785

62,314

50,509

2,200.000 1,700,000 1,200,000

1,027,730 917,695

700,000

30,000 20,000

200,000

10,000 0

- 300,000 2013

2014

2015

2016 Trading value

2017 (1) Trading accounts

TDCC Fund Processing & Settlement System

with figures in the same period last year. It is evident

provides data transmission along with deposit and

that TDCC has been improving the service quality of

withdrawal services for domestic and offshore fund

fund transaction platform for the past years, which

distributors, such as securities firms as well as

in turn leads to continuous growth.

securities investment trust and consulting business-

At the end of July 2017, in order to provide more

es. In addition to a drastic decrease in back office

diversified and comprehensive services, TDCC

operating costs, the safety of investors’ fund

further launched data transmission along with

subscription and redemption is further ensured.

payment services for investors’ subscription to

Last year (2016), the number of transactions and the

futures trust funds for securities firms. In the future,

amount of transactions on the platform were

through TDCC’s Fund Transaction Platform, inves-

1,600,000 and NT$50.5 billion respectively, with the

tors can enjoy the option of “one stop shopping” for

number increasing by 36% and amount growing by

domestic offshore funds and futures trust funds. It is

23%. During the first half of this year (2017), the

expected that domestic fund industry development

number of transactions and amount amounted to

will be stimulated through low cost, highly efficient

1.1million and NT$31.2 billion respectively, with a

and comprehensive infrastructure of the market.

growth of 57% and 40% respectively compared

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After-Hours Trading of Futures Settlement System Trading hours

8:45

13:45

After-Hours Trading Session

Trading hours

5:00

15:00

13:45

8:45

After-Hours Trading Session

15:00

5:00

Daily settlement price

Daily settlement price

Transactions took place after-hours will be considered as the ones in the trading hours of the following business day

Answering to the needs of the domestic market participants to promptly react to any international political and/or financial issues that occur after the trading hours, and increasing demands for the risk management; effective on May 15th, 2017, Taiwan Futures Exchange (Taifex) starts the new After-Hours Trading Scheme which acknowledges the trades from the end of the trading hour to 5:00 am on the next business day. Correspondent to the inquiries of Taifex, TDCC is to develop and maintain the “Futures Settlement System” that continues to process all settlements and monitor potential risks after the trading hours. In addition, considering the possibilities of inadequate manpower for instantaneously supervising and managing the Excess Margin in After-Hours trading session, the complementary features are also made available for better risk managements: 1. The Excess Margin Alert Function. When an entrusted margin exceeds the designated percentage (60%, 80%, 90%, and 100%) during the settlement, the system will alert the clearing member who then can access the system and perform inquiries and verify the transactions. 2. During the After-Hours trading session, the “Futures Settlement System” will grant the clearing member the access to deposit their margins, and with the After Hours Trading Scheme, when the clearing member deposit their margins (NT dollars or otherwise), it would be admitted into their virtual accounts. 3. In the After-Hours trading session, in addition to depositing their margins, the “Futures Settlement System” will calculate then settle the margins that clearing members needs to deposit (by 7:30 pm, 20% of their Excess Margin) as the entrusted margin amount to ensure a successful transaction and to meet the possible additional inquiries during the process.

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Statistics Billion Share

Statistics of Equities in Custody (Shares)

1,130 1,125

1,127 1,123 1,125

1,120 1,110 1,105 1,100 0

2016 - 1

2

3

4

5

6

7

8

9

10

11

Trillion NT$

Statistics of Equities in Custody (Market Capitalization)

30.56

35 34

30.05

33 32 31 30

30.63

29 28 2016 - 1

Statistics of Book-Enrey Operations (Market Capitalization)

2

3

4

5

6

7

8

9

10

11

Million Share

120,000

109,367

96,009

100,000 80,000 60,000 40,000

25,08

20,000 0

16,678

614

2016 - 1

2

3

312

4

5

6

7

8 TWSE

Statistics of Short-Term Bills in Custody

2,000 1,800 1,501 1,600 164 1,400 1,200 1,000 1,418 800 600 400 300 0 2016-1

9 TPEx

10

11

Emerging Stock

Billion NT$

1,784

1,668

221

1,562

1,562

2

3

4

5

6

7

8

9 ABCP/MN

8

10

1,804

159

11 NCD

2017-1 CP2/CP1/BA

178

1,626


Million NT$

Statistics of Short-Term Bills Clearing & Settlement in Secondary Market

1500 2,043

2000

1,734 1,778

1,768

1,778

1500

1,219

1000 500 0 2016 - 1

2

3

4

5

6

7

8

9

10

11

12

Buy/Sell

Statistics of Equities in Custody (Market Capitalization)

70 60

2

900,000

751,230

733,371

712,327

684,876

657,776

2017.1 Repo

800,000 700,000

50

600,000

40

500,000 400,000

30

300,000

20

200,000

10

100,000 0

0 2016.1

4

7

10

Accumulated Master Agents

Statistics of Subscription on Offshore Fund Transmission and Payment Platform

2017.1

Accumulated Distributors

Million NT$

1,125 1,217

1,120

1,587

1,110 1,105

765

1,100 0 2016.1

2

3

4

5

6

7

8

Amount of One-time investment

Statistics of Registration of Issuance of Dematerialized Securities

2,032 11%

1,454 8%

9

10

2017.1

Amount of Systematic Investment Plan

March 2017 856 4% 313 2% 407 2%

13,864 73%

Warrants Stocks Beneficiary Certificates Corporate Bonds/Bank Debentures Convertible Bonds Others

9


Stock Meseum Taiwan Stock Museum: An overview of the Exhibition Halls

There are Permanent exhibitions and special

The Special Exhibitions:

exhibitions here in the Taiwan stock Museum. The

Themes for Special Exhibitions are regularly,

permanent exhibitions are for long term showcas-

periodically changed in correspondent to particular

ing the unique attributes of the museum whereas

subjects and/or products.

the special exhibitions are featuring some modern

Themes and abstract

specific themed exhibitions periodically, hence the revisits of the previous patrons.

Period

Themes

Dec. 2012 -

Early Public Securities

Nov. 2013

The permanent exhibitions: The Introductory Hall: The Aspects, Issuing and trading of stocks, and

Dec. 2013 Nov. 2014

the Asset managements. The Inception Hall: The conception of the stocks;

Dec. 2014 -

the first stock ever of the world, China and

Current

Taiwan. The Continuation Hall: Taiwan economical evolution and the progressive developments of the stocks in Taiwan. The Transformation Hall: Interactive Theater – The Joyful City. The Incorporation Hall: The centralization of the stocks and the virtual, paperless stock promotion and beneficial effects.

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Patriotic Lottery, Liberty Bond

Early wellknown Listed Stocks

Abstract Government bonds, Treasury bills, savings bonds, deposit certificates and stocks of the stated-owned business issued in the Japanese Occupation period. Early Securities issued by the Nationalist Government.

Stocks listed by some well-heeled families in Taiwan during the Japanese occupation period.


TDCC Gallery hairman & CEO Mr. Sherman Lin (2nd from left) posed for a group photo with Outstanding Financial Operators 2017 of TDCC.

TDCC sent delegation to attend "Gartner Executive Programs Regional CIO Summit Greater China 2017" in Shanghai. October 19, 2016.

小小文創家營隊,台東

We are the champions! TDCC basketball team won the 1st place of The 7th Securities and Futures Related Institutions Cup. Group photo of President Meng and TDCC basketball team.

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11F, 363 Fushin North Road, Taipei, Taiwan, R.O.C. T. 886 2 2719 5805


TDCC 2017 SPRING NEWSLETTER - VOLUMN 168

OUTLOOK

 tTDCC 2017 Business Outlook

SPECIAL REPORT  tTDCC Elected As Asia PaciďŹ c CSD Group as Executive Committee Member

BUSINESS HIGHLIGHT    

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STATISTICS STOCK MUSEUM GALLERY  t International Activities

Chinese Calligraphy : SPRING "ć˜Ľ"


TDCC 2017 SUMMER NEWSLETTER - VOLUMN 169

OUTLOOK

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Chinese Calligraphy : SUMMER "夏"


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OUTLOOK

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Chinese Calligraphy : WINTER "冬"

臺灣集中保管結算所2017英文版季刊 - 春夏秋冬  

TDCC Quarterly Newsletter _ Autumn

臺灣集中保管結算所2017英文版季刊 - 春夏秋冬  

TDCC Quarterly Newsletter _ Autumn

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